Chapter 12 - Consideration

Consideration is legal value bargained for and given in exchange for an act or a promise.

• True
• False

A person who agrees not to file suit has not provided valid consideration.

• True
• False

Courts always examine the adequacy of consideration.

• True
• False

A person who agrees to obey the law has provided __________ consideration.

• No consideration (preexisting duty)
• Adequate consideration to be binding and enforceable

To be valid under the UCC, an agreement to modify a contract for the sale of goods:

• Does not require new consideration
• Requires new consideration